ARD FINANCIAL GROUP PLACES MNT2.0 BILLION BOND 2017-03-21

Press Release Ulaanbaatar, Mongolia

In February 2017 Ard Financial Group (Ard Holdings, Group) issued MNT2.0 billion commercial bond on the market and was able to place it privately within a month, notwithstanding the difficult operating environment.

The bond has a face value of MNT1.0 million, annual yield of 19.2 percent, maturity of 24 months, and pays quarterly coupons. The Group intends to use the proceeds to expand the loan portfolio of its non-bank financial institution, Ard Credit, accelerating its development and enhancing its market position.

Commercial bond is a financial instrument, which enables businesses to access low-cost financing, and investors to earn high returns while directly funding companies.

Ard Securities, a brokerage house of Ard Holdings, underwrote the bond. The company recently received a capital injection of MNT1.5 billion from its parent, quadrupling its capital and positioning it for the leadership position in the market. Furthermore, Ard Securities was able to raise USD600,000 for a private Mongolian airline – Hunnu Air at the end of 2016.

Ard Credit is a non-bank lender of Ard Holdings, which was established in April 2011 with the purpose of providing micro and SME loans using innovative technologies. Ard Credit is licensed by Financial Regulatory Commission to engage in lending, currency exchange, financial advisory, trust deposit service and credit card issuance. The company was able to generate a profit of more than MNT390 million in 2016 despite the economic downturn and is to pay out a dividend. The company is set to obtain a full banking license in due course.